Business entities in Jordan

Business entities in Jordan

Healy Consultants will assist our Clients with incorporating the optimal corporate structure for their company. There are several ways of doing business in Jordan, the most common being the setting up of a limited liability company. However, Healy Consultants recommends our foreign Clients to setup a public limited company because this will give their business a marketing edge for a similar incorporation cost. Foreign entrepreneurs may also incorporate an offshore company, a branch office or a representative office in Jordan.

The Jordan limited liability company (WLL)

A limited liability company in Jordan can be incorporated with a single shareholder, with prior agreement from the Companies’ Registrar Commissioner. While shareholders can be of any nationality, foreigners i) must make a minimum share capital contribution of US$70,650 and ii) will be required to enter in a joint venture agreement with a Jordanian partner, if investing in restricted sectors;

The Jordanian LLC will be managed by at least 1 director, who can be of any nationality and place of residence. The company will also be required to i) have its annual financial statements audited by a licensed audit firm and ii) to file them with the Jordanian Companies Registrar before April the 30th.

The Jordan public limited company (LTD)

A Jordanian public limited company requires only i) 1 shareholder, with prior agreement from Companies Registrar Commissioner and ii) a paid up share capital of at least US$100,000. Foreigners are allowed to setup a PLC in Jordan but i) must pay up at least US$70,650 to the company’s share capital and ii) will be required to form a joint venture with a Jordan national, if investing in restricted sectors;

Public limited companies are not required to list in Jordan. To do so, a PLC must i) increase its authorized share capital to US$700,000, of which at least 25% must be publicly traded and ii) appoint a board of at least 3 directors, half of whom must be independent from the company. If needed, Healy Consultants will be pleased to assist our Clients with listing their company on the Amman stock exchange.

The Jordan offshore company (non-operating foreign company)

The Jordan offshore company is only allowed to conduct operations and sign contracts with entities based outside of Jordan and can only be registered by foreign corporations and individuals. This business entity is henceforth commonly used by foreign entrepreneurs as i) an operating headquarters for their Middle East operations and/or ii) to receive foreign-sourced income, as such company is allowed to open a non-resident corporate account in Jordan;

Setup of a Jordan offshore company only requires to enter in a lease agreement in Jordan. If employees are hired, 50% of them must be Jordanians. While Jordan offshore companies still must file audited financial statements, they do not pay i) corporate tax and ii) payroll tax and social security contributions on foreign employees’ salaries;

Our Clients setting up an offshore company in Jordan usually do so in order to reduce taxation on foreign-sourced earnings, as this business entity enjoys 100% exemption from i) corporate tax and other taxes levied on corporate earnings and ii) no Jordan withholding tax when remitting such earnings to our Client’s parent company;

Incorporating a Jordanian offshore company is easy, as it only requires i) US$1 of share capital ii) 1 shareholder and iii) 1 director, who can be of any nationality and place of residence for most business activities;

Using a Jordan offshore company as a tax optimization vehicle also allow our Clients to pay lower taxes outside of Jordan, thanks to the country’s double taxation avoidance agreements with 35 countries including Canada, France, India, Indonesia, Malaysia, Qatar and the United Kingdom.

The Jordan branch office (operating foreign company)

Jordanian company law stipulates that foreign companies can open branch offices in Jordan, provided i) they can demonstrate such opening is necessary for the execution of a contract with a Jordan customer and ii) the branch office will neither conduct operations nor commercial activities in sectors restricted to foreign ownership;

The Jordan branch office must also i) appoint a resident representative and ii) file audited financial statements with the Companies Registrar, which must be previously published in two daily Jordanian newspapers;

Incorporating a branch office in Jordan is complicated procedures, as such company must i) prove that establishing a branch office is necessary for the execution of a contract in Jordan ii) appoint a resident director iii) publish its audited annual financial statements in 2 daily newspapers and iv) renew its registration license every two years.

The Jordan representative office

While the Jordan representative office can be 100% foreign owned, it is not allowed to pursue production-related or commercial activities in Jordan. Consequently, this entity can only engage in i) market research and ii) promoting the business of the parent company. The representative office is also required to enter into a lease agreement in Jordan.

Table of comparison between Jordan entities

LLC

PLC

Offshore company

Branch

Rep office

Also known as:

WLL

LTD

Non-operating foreign company

Operating foreign company

Non-operating foreign company

How long to set the company up?

8 weeks

12 weeks

8 weeks

15 weeks

8 weeks

How long to open company bank account?

4 weeks

4 weeks

5 weeks

4 weeks

4 weeks

Legal liability?

Limited

Limited

Unlimited

Unlimited

Unlimited

Minimum shareholders?

1

1

1

1

1

Authorities pre-approval needed to incorporate the company with a single shareholder?

Contact us

Testimonial

“Pirster Pte is happy with the work that Healy Consultants undertook for the company. International incorporation can be fraught with opacity, anxiety and vulnerability - especially if it is being done remotely as we did. Healy Consultants worked really hard to make it transparent, straight forward and confidence-inspiring. I look forward to working with Healey Consultants again on future work and happily recommend them to others.”

Fiona Thompson, Managing Director Pirster Pte.

“We had taken Healy Consultants assistance in incorporating our entities in some of the complicated jurisdictions. Their approach right from the beginning has been very systematic, clear and efficient. It has been a pleasure to work with all of them.”

“Thank you Healy Consultants for swiftly project managing my engagement. From the moment I met you in Singapore Healy Consultants attended to my requirements and specific needs. I am more than satisfied with your service. Moreover, your weekly updates allowed me to continue to focus my attention on my global business while trusting you to deliver as promised.”

“Thank you Healy Consultants, you were instrumental in setting up of my Hong Kong based company, the whole process was completed in a professional and timely manner.”

Terry Skews, CEO Brittany Offshore Limited

“Healy Consultants, a professionally managed firm with clear understanding and knowledge about what client expects from them and delivers the same in a professional and timely manner. Kudos to their team.”

“Incorporating any company is comparable to setting the foundation blocks of your new company building, which you aim to build in the best location available. By choosing Healy Consultants you are laying the perfect foundations.”

“The one word that defines Healy Consultants is perfect professionalism. If you have Healy to set up your business abroad, you could focus on the operational overhead and let Healy take care of the rest. From Incorporation to Taxation, it’s a one stop solution. Rest assured, you will have the best people in the Industry working for you and providing you with the best possible information and suggestions.”

Raja Chakraborty, Director Streamlyn Pte. Ltd.

“Thank you Healy Consultants for successfully project managing our business set up in Kuwait, Lebanon, Qatar and Bahrain.”

“When it was time to establish a Space Academy in Singapore, TriVector needed a knowledgeable firm that could not only help us establish our infrastructure, but could also advise on the local and regional business climate. Healy was that firm, which is why we've been satisfied Healy Consultants for almost five years now.”

“Healy Consultants were instrumental in the set up of our company. They have continued to provide exceptional support and advice over the years.”

Susan Gunnery, Managing Director Qudoss Group

“Healy Consultants is the best firm that we have ever worked with. Through our entire business relationship we were satisfied with provided level of quality and services. Healy Consultants have been responsive and detail oriented which has allowed us to stay focused on our business and not getting distracted with small details.”

Testimonial

“Pirster Pte is happy with the work that Healy Consultants undertook for the company. International incorporation can be fraught with opacity, anxiety and vulnerability - especially if it is being done remotely as we did. Healy Consultants worked really hard to make it transparent, straight forward and confidence-inspiring. I look forward to working with Healey Consultants again on future work and happily recommend them to others.”

Fiona Thompson, Managing Director Pirster Pte.

“We had taken Healy Consultants assistance in incorporating our entities in some of the complicated jurisdictions. Their approach right from the beginning has been very systematic, clear and efficient. It has been a pleasure to work with all of them.”

“Thank you Healy Consultants for swiftly project managing my engagement. From the moment I met you in Singapore Healy Consultants attended to my requirements and specific needs. I am more than satisfied with your service. Moreover, your weekly updates allowed me to continue to focus my attention on my global business while trusting you to deliver as promised.”

“Thank you Healy Consultants, you were instrumental in setting up of my Hong Kong based company, the whole process was completed in a professional and timely manner.”

Terry Skews, CEO Brittany Offshore Limited

“Healy Consultants, a professionally managed firm with clear understanding and knowledge about what client expects from them and delivers the same in a professional and timely manner. Kudos to their team.”

“Incorporating any company is comparable to setting the foundation blocks of your new company building, which you aim to build in the best location available. By choosing Healy Consultants you are laying the perfect foundations.”

“The one word that defines Healy Consultants is perfect professionalism. If you have Healy to set up your business abroad, you could focus on the operational overhead and let Healy take care of the rest. From Incorporation to Taxation, it’s a one stop solution. Rest assured, you will have the best people in the Industry working for you and providing you with the best possible information and suggestions.”

Raja Chakraborty, Director Streamlyn Pte. Ltd.

“Thank you Healy Consultants for successfully project managing our business set up in Kuwait, Lebanon, Qatar and Bahrain.”

“When it was time to establish a Space Academy in Singapore, TriVector needed a knowledgeable firm that could not only help us establish our infrastructure, but could also advise on the local and regional business climate. Healy was that firm, which is why we've been satisfied Healy Consultants for almost five years now.”

“Healy Consultants were instrumental in the set up of our company. They have continued to provide exceptional support and advice over the years.”

Susan Gunnery, Managing Director Qudoss Group

“Healy Consultants is the best firm that we have ever worked with. Through our entire business relationship we were satisfied with provided level of quality and services. Healy Consultants have been responsive and detail oriented which has allowed us to stay focused on our business and not getting distracted with small details.”

“Not only did Healy Consultants have expert knowledge of local requirements, they also understood my needs as a foreigner, which is something lacking with the Singaporean consulting firms I spoke to. They drove the process from start to completion. I’m more than satisfied with the service.”